Write Offs, Accelerated Depreciation & Advantages to the LLC
Hello to all,
This is my first post on Biggerpockets but I have browsed ever since I purchased my first townhome last October. The townhome I purchased has a decent CF and is in an LLC I started. My grandfather who has been in the game his whole life has preached that when I filed my taxes I did everything under accelerated depreciation. I understand if I go to sell the property what the benefits are but not so much how I can use the accelerated depreciation to my advantage by holding the property and how I could use it as leverage to acquire more investment properties. I also would appreciate any input on writing things off under the LLC. My goal is getting as much cash out of everything as possible, being a newbie it is the most pressing thing to me. I closed on my first home a week ago and got it $10k under appraised value knowing it had been a rental and would need plenty of work. I am leaning towards holding it as a rental after living in it a few years but with the improvements I have already completed it would be a very painless and easy flip. The home I am moving into is not part of the LLC. I guess my main question is just for input on what incentives and breaks I can take advantage of to get my career rolling faster.
Thank you all to any insight you can provide,
Aubrey H. Hall, IV
Licensed Realtor & Property Manager